Rhodia Sells Mining Equipment to Reherbia in Return for Cigars

question 5

Multiple Choice

Rhodia sells mining equipment to Reherbia in return for cigars.This is an example of _____.

• A)countertrade
• B)direct exporting
• C)foreign licensing
• D)international production

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Definitions:

Labor Force

The total number of people who are employed and unemployed but seeking work within an economy.

Price Level

The overall cost of goods and services expressed as an index, which helps to compare different periods' economic conditions.

Long-Run Aggregate Supply

The total amount of goods and services produced in an economy at full employment, unaffected by price levels in the long term.

Nominal Wage

The wage that is paid to workers in current dollars, without adjustment for inflation.